Secured Credit Card: How to Apply and Its Benefits

Do you need instant access to funds but have a poor credit score? In that case, apply for a secured credit card online. These cards require you to pledge an asset as security. 

Using collateral is the basic requirement to get such a secured credit card. One of the most commonly used securities is a fixed deposit, which minimises the risk for issuers and leads to higher chances of approval. 

With a secured credit card, you can rebuild your credit score if you’ve repaid late or defaulted in the past or create one if you’re a newbie. Treat this as the first step to getting your credit score right before you apply for a traditional unsecured credit card. Before starting your credit card journey, learn about the pros and cons of secured credit cards.

Secured Credit Card – Meaning

Unlike traditional credit cards, the credit limit on a secured credit card does not rely on your credit score or repayment history. Instead, it depends on your fixed deposit; it is used as a collateral, and the fixed deposit amount decides your credit limit. With some issuers, you can get 100% of your fixed deposit amount as your credit limit.

Your secured credit card looks like any regular credit card. It consists of:

• A card number
• An expiry date
• Your (cardholder’s) name
• A logo of your issuer
• A Visa, Mastercard or RuPay logo (payment network)

On the reverse side, there is:

• A magnetic chip
• The CVV number

A secured credit card has the same functionality as a traditional credit card. You can use your card to make transactions, online or offline:

• Offline – After purchasing at a store, swipe your credit card. Enter the PIN and complete your transaction.
• Online – Add your credit card to the payment method after buying a product online. Enter your card number, expiry date and CVV. An OTP will be generated to complete your transaction.

• Linking to Apps – Link your credit card to apps which you use regularly for services, like a cab services app or a movie ticket booking app. Linking the card makes the process smooth for all future purchases.

However, try to keep your utilisation ratio under 30% to ensure a healthy credit score. A good credit score comes in handy if you want to apply for an unsecured card in the future.

How to Get a Secured Credit Card – Steps Involved 

Getting a secured card is simpler than getting a regular credit card. You need to follow the following steps to apply for a secured credit card online:

• Step 1 – Find a secured credit card that suits your lifestyle 
• Step 2 – Understand the eligibility criteria before applying
• Step 3 – Go to the issuer’s website and apply online
• Step 4 – Complete the verification process
• Step 5 – Add your documents and other details
• Step 6 – Select your FD amount and share other details
• Step 7 – Make the FD, complete the KYC process and add your nominee
• Step 8 – Complete the application process

Secured Credit Cards – The Innumerable Benefits 

Secured credit cards come with many perks. They are of many types, and you can also choose credit cards for food delivery or dine out rewards if you like to spend on these activities. Certain cards may offer more travel or fuel benefits, so check the card offers before you proceed. 

Some generic benefits of secured credit cards are:

If you are looking for a secured credit card with multiple benefits, consider the One Credit Card and FD combo. You can book an FD of just Rs.5000 and enjoy 100% of your FD amount as the credit limit. What’s more, you can earn 5X reward points on your top two spending categories every month and enjoy offers like 30% off at Behrouz Biryani and 2% valueback at McDonald’s.    

Using the powerful One Credit Card mobile application, you can find offers around you via GPS, track your spends and much more. Apply now to enjoy the benefits of this lifetime-free credit card.